Marriage and Money – How to Make it Work

One of the top reasons married couples argue-and even divorce- is because of plain, old-fashioned money issues. There are a lot of changes involved in being newly married, especially during the family planning phase of a new relationship.

Everyone wants to have security and a safety net in their financial lives, and if couples learned early to discuss money issues before tying the knot, the divorce rate just might find a way to go down and happy, more stable relationships may be on the rise. Newlyweds may stand a better chance of staying out of debt by getting their money ducks in a row.

Here are the top financial questions to answer prior to walking down the aisle.

Financial Attitudes

Couples who are not in synch on matters of finance can quickly find themselves at odds all too often. If couples find they are not on the same page when it comes to money, it may be wise to invest in some professional classes or counseling to find common ground on money issues before walking down the aisle.

Money Management

While it may be so precious to see both of your names at the top of the checkbook, it is in fact a major responsibility to be “in charge” of the finances. Many times couples just assume the other will handle it all, but that assumption can lead to trouble. It needs to be laid out on the table exactly who will pay the bills, balance the checkbook, and track expenses. Couples must commit to establishing and abiding by a budget. Both parties must also commit to remaining progressive with finances and savings plan.

One or Two Incomes

Depending on the nature of the situation, many couples may need to face the question of careers. If a newlywed couple will soon be adding a baby to the family, it should be discussed prior to birth who, if anyone will stay home and who will continue to bring home a paycheck. If both parties are contributing an income it should be discussed how each pay will be divvied up to pay bills and add to savings before bitterness of “not doing one’s share” takes over.

Financial Decision Makers

While both couples should have an active say in how money is spent, there should be some guidelines when it comes to big purchases. For instance, couples could decide to set a $500 limit on spending before consultation with the other person. If hubby wants to buy a new set of golf clubs for $700, he must first discuss the purchase with wifey.

Dealing with Prior Baggage

Now more than ever, people are coming into relationships with financial baggage, such as credit card debt and even bankruptcies. It is important that individual finances be discussed prior to making it legal as in many states, individual debt becomes shared debt once the union is legal. There can be a lot of regret and frustration when dealing with finances that are not technically your own.

Long-Term Goals

While it may seem overwhelming enough to deal with the financial present, couples also need to understand each other’s ideas for future finances and the long-term outlook on money issues. Starting out, couples need to take a long, hard look at 20-40 years down the line to prevent escalating problems and start saving for retirement as early as possible.

While dealing with money issues may seem overwhelming and frustrating in the beginning, it is a necessary evil to avoiding both debt and marital problems. When you consider the cost and emotional toll of divorce, you and your significant other are much better off doing it right the first time.